Boroo hits its stride

Cameco‘s (CCO-T) 53.2%-owned Boroo gold mine, 110 km northwest of Mongolia’s capital city, Ulaanbaatar, has begun commercial production.

The conventional open-pit and milling facility is owned and operated by Boroo Gold, which in turn is indirectly owned by Australian-based AGR. Cameco’s gold division holds a 56% interest in AGR.

Production for 2004 is pegged at 210,000 oz. at a cash cost of around US$170 apiece. Probable reserves stand at 1.16 million oz. with an average grade of 3.5 grams gold per tonne, based on a gold price of US$325 per oz. Exploration continues.

The price tag for the mine is US$75 million, almost double original estimates owing to the decision to go with a mine-owned fleet rather than contractors.

The operation is expected to run until at least 2009.

Altai Trading, a Mongolian investment company, owns the remaining 5% of Boroo.

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